This is part of a broader effort to regulate the crypto space for the first time. It aims to provide clearer rules for exchanges, dealers, and issuers.
The UK government has recognized the explosion of crypto trading. Around 7 million people, or 12% of the adult population, now own cryptoassets. However, the industry remains largely unregulated. This is raising concerns over consumer protection, especially in an environment where risks abound.
New Regulations and Restrictions
The FCA’s recent draft laws aim to crack down on “bad actors” within the crypto market while fostering innovation in legitimate projects. One major proposal is the restriction on retail investors using borrowed funds to purchase crypto, with a focus on credit card use. According to the FCA, 14% of crypto investors used credit to buy crypto in 2023. This is a significant jump from just 6% the previous year. By targeting credit card purchases, the FCA seeks to prevent consumers from making high-risk investments using borrowed money. Thus protecting them from potentially large losses.
In addition to restricting credit card use, the FCA is exploring further measures to regulate cryptoasset lending and borrowing. This includes conducting credit checks and assessing consumers’ investment knowledge. Cryptoasset lending allows individuals to loan their crypto in exchange for a yield. This is while borrowing involves taking out loans in crypto to be repaid with interest.
JUST IN:
— Bitcoin Archive (@BTC_Archive) May 2, 2025
More About Crypto Regulation
Eric Trump recently made bold statements about the future of banking and digital assets, asserting that any bank that doesn’t embrace digital transformation will be “extinct in 10 years.” He emphasized the need for the United States to take the lead in regulating and adopting digital assets, signaling a new era of financial innovation.
JUST IN:
@EricTrump States Any Bank “Who Doesn’t Embrace Will Be Extinct In 10 Years.”
A New Digital Era Is Emerging Globally, It’s Time The United States Takes The Lead In Regulation & Adoption of Digital Assets!
“Our Banking System Is Broken”
Bitcoin, $XRP, $HBAR… pic.twitter.com/7noGloXMAR
— Good Morning Crypto (@AbsGMCrypto) April 30, 2025
Trump also criticized the current banking system, calling it “broken,” suggesting that traditional financial institutions are failing to keep pace with technological advancements. His comments underscore the growing importance of blockchain and digital currencies in reshaping the global financial landscape.
Disclaimer
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